Drakes, I still don't like RACE, just for the record. Also, I did not buy on the financing news. However, the financing, as you said, does stop bankruptcy until the middle to late 1998 if BT sales don't materialize (don't hold your breath for them).
I agree that the convertibles will put pressure on the stock either when they are converted and then sold (they aren't into investing in RACE, just making money), or until they short the stock in an attempt to lock in profits.
I also agree that the announcment of the convertible was obtuse and didn't give enough information to really judge it. Of course, a private placement isn't the same as an offering or the same as a bank loan. If the company had a bank loan, then I'd say BT sales are imminent. At this time, however, the company is desperate and probably on its way down to zero.
The current investors will have to learn the hard way. Marshall will probably have to change his screen name after his constant hyping on this company. On the other hand, maybe RACE will beat the odds- but again, I wouldn't want to bet on RACE without a stop (let's say $ 4 for the really agressive).
With these crazy companies, you really need to have a stop loss somewhere. HAVE A STOP LOSS ! Marshall, don't you agree?
RACE today: $ 5.44B and $ 5.50 A |
